Gibraltar: The Rise and Regulation of Esports

The Rise of Esports Globally

Esports have achieved international recognition and a rapid rise in popularity over the last decade and this trend continues apace.

In fact, globally, the esports market size is expected to grow from US$1.74 billion (around €1.5 billion) in 2024 to US$6.63 billion (around €5.75 billion) by 2032. 

The growth in competitive gaming is due to a number of factors. These include increased internet penetration and technological advancements in streaming, which have improved access to live gaming competitions for global viewers. Increased popularity of mobile gaming platforms and good gaming hardware have expanded the pool of audiences. Again, investment by major brands and sponsors, together with the establishment of professional teams and leagues, has created a firm foundation, enabling the ecosystem to grow. Also, integration with social media has accelerated engagement, allowing fans to interact and follow their favourite players and events in real time.

The number of esports tournaments recognised by the International Esports Federation (IESF) has grown exponentially.   Gibraltar has invested heavily into the world of esports and created its own growing esport infrastructure and talent base. 

In Gibraltar, esports and video gaming are regulated through the Gibraltar Esports and Video Gaming Association (GEVGA), an unincorporated association that serves as the sports’ official governing body and recognised as such by the Government of Gibraltar and the Gibraltar Sports & Leisure Authority (GSLA). 

The GEVGA registered with the GSLA as a ‘leisure association’ in 2019. Since then, it has progressed significantly, transitioning to a fully blown sports association in January 2023. The GEVGA collaborates closely with these public bodies to promote Gibraltar esports locally and on an international level. 

The development and growth of Esports in Gibraltar

The Government of Gibraltar has welcomed esports with open arms, as it has done with its Gaming, Crypto and Fintech industries in the past. It has done so by supporting and regulating the esports industry, providing both guidance and support, which has been one of the primary drivers for its growth. Driven by its favourable regulatory environment, Gibraltar has managed to attract new esports business and entrepreneurs from abroad.

The GEVGA has developed a dedicated state of the arts esports hub at the Europa Sports Complex to provide a comprehensive space for learning, training, and competition. The premises are located within one of the major multi-sports complexes in Gibraltar. The use of this facility, coupled with the rise in popularity of esports, is expected to have strong impacts on the local economy, attracting tourists and investors, and creating job opportunities in the tech, sports and gaming industries. Furthermore, on an international level, this is expected to attract increased investment and place Gibraltar as a key player in the esports sphere.

To set out a clear roadmap for the industries development, the GEVGA has set a four-year target to promote the growth of the esports ecosystem in Gibraltar. Its primary focus is on expanding its reach, increasing competitive excellence, strengthening partnerships, and fostering a thriving community. 

One of the primary strategic objectives is to expand community growth and engagement, with the aim of increasing the GEVGA active membership by 60% by 2028. This will involve collaborating with junior academy programmes for young participants and local schools to promote esports and gaming culture. 

Secondly, it aims to establish and support Gibraltar esports national teams to achieve representation at international tournaments. 

Thirdly, the GEVGA hopes to host local and international tournaments on various titles, including those with international participation. 

Fourthly, securing long-term partnerships with at least two major sponsors by 2028 is a key priority. 

Finally, the GEVGA aims to introduce esports-related educational programmes and career development initiatives to support the next generation of professionals. 

This roadmap that the GEVGA envisions for the next four years provides a clear path for growth and development, identifying structural areas that require expansion, such as community engagement, competitive excellence, and partnership building. By building on these areas, the GEVGA will continue to strengthen its position as a leader in the Gibraltar esports scene.

Regulatory and legal aspects of Esports

With the advent of new industries, we must consider the legal and regulatory challenges that esports face. 

Gibraltar has a well-established regulatory framework for online gaming and gambling, under the Gambling Act 2005, which is relevant to esports, given the increasing integration of betting and gaming services within the industry. Additionally, there may be certain overlap with gambling regulations, where games feature betting scenarios, for instance. 

Companies in esports must also consider data privacy laws such as the EU GDPR (General Data Protection Regulation), when dealing with an online community. Guaranteeing compliance with data protection laws, aside from being a regulatory requirement, ensures that a level of trust is built with the audience.

Conclusions

The rise of esports in Gibraltar has been driven by an established regulatory landscape, investment into the Europa Sports facility and the strategic targets set out by the GEVGA to ensure consistent growth and development of the industry. 

Legal and regulatory challenges relating to licensing, copyright and data protection laws are simply some of the issues facing the industry in the short term. 

Overall, Gibraltar’s esports infrastructure is moving into global territory with its increased exposure and participation in international tournaments organised by the IESF.

Ian and David can be contacted by e-mail at ian.felice@hassans.gi and david.vargas-arias@hassans.gi respectively. The Authors wish to thank Charles Garcia, Chairperson, GEVGA.